Taxes Review

Who primarily uses our tax money?

• large corporations

• local businesses

• federal and state government

• your employer

federal and state government

Our tax money is spent on all of the following EXCEPT:

• the military

• private school education

• social security

• national parks

private school education

Which of the following is NOT a category in the Federal government’s spending?

• interest on loans issued

• interest on national debt

• discretionary spending

• mandatory spending

interest on loans issued

Which of the following taxes is applied to wages, salaries, dividends, and interest earned?

• income tax

• estate tax

• excise tax

• corporate income tax

income tax

The W-4 form lets…

• the government know how much you paid in taxes last year

• the 3 major credit bureaus know how many dependents you have

• you know how much you paid in taxes last year

• your employer know how much to withhold from your paycheck

your employer know how much to withhold from your paycheck

Jess is 21, in college, & has a job that provides 65% of her support. Is she a dependent?

• Yes

• No

No

What item would you DEFINITELY see on a paystub?

• Gross pay

• Healthcare

• Retirement

• Your occupation/role

Gross pay

By claiming "exempt" on the W-4 form...

• You are asking for a one year exemption from paying taxes

• You are paying all income taxes at the END of the calendar year

• You are saying that you do NOT meet the minimum income requirements to file

• You are paying all income taxes upfront at the START of the year

You are saying that you do NOT meet the minimum income requirements to file

Jason filed his tax return and owes money. If he doesn't want to pay a fee, when should he pay this amount by?

• January 1st of the next year

• October 15th

• December 31st

• April 15th

April 15th

True or False: All wages, tips, and bonuses are taxable unless specifically excluded. (T/F)

True

Each of the following things is true about the W-2 form EXCEPT...

• it lets you know how much you earned last year

• it lets you know how much was withheld from your paychecks

• it contains information you'll need to fill out a 1040

• You get 1 W-2 form every year, even if you had multiple jobs

You get 1 W-2 form every year, even if you had multiple jobs

Jason is 15 and earned $1450 at his job last summer. Should he file a tax return?

• Yes. You must file taxes even if you didn't earn enough.

• No, because he didn't earn enough.

• Yes, because he may get a refund.

• No, because you have to be 16 and older to file taxes.

Yes, because he may get a refund.

What do you need to file your 1040 form?

• your W-4

• income of $50,000 or more

• your prior year’s tax return

• your W-2

your W-2

Which of the following is NOT a way you can file your taxes?

• Through your employer's HR department

• Mailing in a paper tax return to the Federal government

• Through a tax professional

• Using tax software like TurboTax

Through your employer's HR department

True or False: A teen's earned income can be reported on a parent's tax return.

False

If a teen files a tax return, can the parent still claim him/her as a dependent?

• No. If a teen files a tax return, he/she cannot be claimed

• Yes, as long as the teen meets the dependency requirements

• Yes, but the parent has to add the teen's income to theirs

• Yes. All teens are dependents until they are 18 years old

Yes, as long as the teen meets the dependency requirements

Luisa earned $1,200 at her part-time job, and $500 from babysitting in cash. Which is TRUE?

• Luisa is required to file a tax return.

• She will report her total income as $1,700.

• She will report her total income as $1,200.

• She will report her total income as $500.

She will report her total income as $1,700.

Earned income is any money you make from things like interest and dividends. (T/F)

False

If you owe taxes, which of the following is FALSE?

• You can make a payment using cash

• You can delay your payment deadline'

• With an agreement, you can pay it in installments

• You can make a payment with a debit, but not credit card

You can make a payment with a debit, but not credit card

Which is TRUE if you do not pay your taxes?

• You owe twice as much the following year

• You’re more likely to be approved for low interest loans

• Your credit score may be impacted

• You cannot go to jail (but you will be heavily fined)

Your credit score may be impacted